Wednesday, June 22, 2016

Silicon Valley unemployment plummets to a 10-year low

I keep talking about an impending slowdown, yet stats like these continue to slap that notion in the face. In May our unemployment level hit a 10-year low with a rate of only 3.4%. In May 2015 that figure was already exceptional at 4.2% and even April 2016 was higher at 3.7%. To put that 3.4% figure in perspective, the whole state of California is performing well right now and the average California unemployment rate is 5.2%.

A total of 5,800 jobs were added to the San Jose Metro between April and May 2016. That brings us up to 1,083,100 jobs. Now some potentially bad news--most of the gains were in professional/business services, leisure and hospitality, and financial services. We lost 400 tech jobs, which tend to have the highest salaries. The positive spin is that our economy is diversifying, which would help weather any future dips in the tech sector.